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U.S. issues new tariff threat, this time against British-built cars

WASHINGTON — Britain is the United States' closest ally but their long friendship may be sorely tested as the two countries try to forge a new trade agreement after Britain's exit from the European Union. U.S. Treasury Secretary Steven Mnuchin said on Saturday in London that he was optimistic that a bilateral deal with Britain could be reached as soon as this year. But Mnuchin gave up no ground after a second meeting with his UK counterpart, Sajid Javid. Javid has insisted that Britain will proceed with a unilateral digital services tax, despite a U.S. threat to levy retaliatory tariffs on British-made autos. Mnuchin told reporters after Saturday's meeting that such taxes would discriminate against big U.S. tech companies like Alphabet Inc's Google, Apple, Facebook and Amazon. The UK Treasury declined to comment on the private meeting. The divide highlights the challenges ahead as the Trump administration seeks a new bilateral agreement with Britain, part of a broader push to rebalance relations with nearly all its major trading partners. The stakes are high — British Prime Minister Boris Johnson has pegged the trade deal with United States as a way to ease the pain of breaking with Europe, Britain's largest trade partner. U.S. President Donald Trump, has promised a "massive" trade deal to support Brexit, the product of a populist movement similar to his "America First" agenda. The goodwill and special relationship the two countries have enjoyed for decades may not count for much, experts say. "Trump is not going to be doing Johnson any favors," said Amanda Sloat, a senior fellow with the Brookings Institution in Washington. "He's not going to give him a trade deal without major concessions." Even before the digital tax issue arose, the Trump administration threatened to tax foreign car imports, which could hit British-made Jaguar, Land Rover, Mini, and Honda Civic hatchback cars. Stiff U.S. trade demands include increased access for U.S. farm goods, concessions that will be difficult for Britain's entrenched natural food culture to swallow. The United States also wants Britain to change the way its National Health Service prices drugs and allow in more U.S. pharmaceuticals, which could prove politically unpopular for Johnson's government. Washington's demand that London block Chinese telecoms equipment maker Huawei Technologies Co Ltd for national security reasons could also cloud talks.

Question of the Day: What's the greatest British car ever?

The British automotive industry has produced everything from high-production econo-commuters to staggeringly luxurious oligarch-wagons, along the way winning plenty of races and building plenty of beautiful machines. The original Mini led directly to the past half-century of transverse-engine, front-wheel-drive cars built everywhere, the MGB put the sporty little convertible into everyone's reach, and the Morris Oxford became the most beloved motor vehicle in India. So many to choose from, but we want you to pick one. What will it be? Related Video:

Bentley putting Mulsanne-based Azure, Brooklands back on the table [w/poll]

Big plans are afoot at Bentley. The quintessentially British automaker has just about signed off on the final version of its new SUV, and will surely roll out more versions of the Continental in the coming years, but that's not all. It's said to be considering a new sports coupe smaller than the Continental GT, but the latest reports coming in from the UK suggest that it also has plans for the Mulsanne's platform.
Currently, the Mulsanne is only available in one configuration, but Bentley is widely expected to be bringing a new, more powerful Mulsanne Speed to the Paris Motor Show this fall with around 550 horsepower. That's not all, however, as word comes in that the Flying B marque is planning to re-introduce both the Azure and the Brooklands as competitors to the Rolls-Royce Phantom DHC and Phantom Coupe, respectively.
For those who don't remember, the Azure and Brooklands were a pair of two-doors based on the Arnage that preceded the Mulsanne at the top of Bentley's range. The Azure was a convertible and the Brooklands a fixed-roof coupe, both of them larger than the Continental GT and powered by the company's evergreen (yet decidedly un-green) 6.75-liter V8.